Mortgage rates today: Friday, May 26, 2023
On Friday, May 26, 2023, the average interest rate on a 30-year fixed-rate mortgage went up four basis points to 6.946% APR. The average rate on a 15-year fixed-rate mortgage rose eight basis points to 6.154% APR, and the average rate on a 5-year adjustable-rate mortgage rose one basis point to 7.477% APR, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 15 basis points higher than one week ago and 187 basis points higher than one year ago. A basis point is one one-hundredth of one percent. Rates are expressed as an annual percentage rate, or APR.
Mortgage rates this week
Mortgage rates rose in the week ending May 25, with fixed rates reaching their highest levels since early March.
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The 30-year fixed-rate mortgage averaged 6.82% APR, up 19 basis points from the previous week's average.
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The 15-year fixed-rate mortgage averaged 5.98% APR, up 29 basis points from the previous week's average.
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The 5-year adjustable-rate mortgage averaged 7.46% APR, up 23 basis points from the previous week's average.
The 30-year fixed-rate, the most popular mortgage, averaged about 6.6% in April and about 6.7% so far this month, up about 1.5 percentage points compared with April and May of 2022.
While rates are higher this spring, housing prices are generally flat compared with a year ago — up slightly in some regions and down in others.
The national median price for existing homes — those owned and occupied before going on sale — was $388,800 in April, 1.7% lower than a year ago, according to the National Association of Realtors. April was the third consecutive month that the NAR reported a slight year-over-year price decline, and February was the first month that the price had ebbed in over a decade.
Price trends vary by region, with 2.8% and 1.8% year-over-year gains in the Northeast and Midwest, respectively. In the South, the median price slid by less than 1%; in the West, the median price dropped 8% from April 2022. Despite that drop, the West remains the most expensive region, with the median price averaging $578,200 in April.
Although home prices aren't skyrocketing, the market is still competitive for buyers due to a shortage of homes for sale. In April, there was a 2.9-month supply, meaning that it would take almost three months for all the homes to sell at the current pace. That's a little better than the 2.6-month supply in March but still below the five- to six-month supply that's considered a balanced market with plenty of buyers and homes for sale.
If you're considering buying a home, get preapproved for a mortgage before shopping. Real estate agents and sellers won't take you seriously without evidence that you can qualify for financing.
Then choose a buyer's real estate agent with deep experience in the local market. A good agent will help you find homes in your price range, write realistic offers and negotiate with sellers to get the best deal.